Descon departs site of Tallis Group’s Akin Residences amid court battles, structural questions

More than 150 buyers in a $180m luxury tower will have to wait another two years to move into their apartments after a devastating falling-out between the developer and builder. Here’s what happened

More than 150 buyers in a $180m luxury tower will have to wait another two years to move into their apartments after a falling-out between the developer and builder.

Tallis Property Group’s partially-built 30-storey Akin, near Brisbane’s Southbank, was due for completion by embattled builder Descon Group Australia early next year.

Instead, the contract has been terminated and both parties have ended up in court.

Adding to uncertainty for buyers are claims of a structural problem with the build, which one source said caused a six-month halt to building and had engineers “scratching their heads”.

Artist impressions of Tallis Property Group's Akin Residences at South Brisbane.

Descon has been plagued by financial troubles, with four of its companies in liquidation and a wind-up application under way for the parent group.

The company has dropped out of billions of dollars in developments in Brisbane and on the Gold Coast, sparking multiple legal battles.

A contractor to Descon on the Akin project claimed concrete had been incorrectly poured at the South Brisbane site.

“Bracing steel was installed because they made an absolute meal of it,” one source said on condition of anonymity.

“The job is an absolute mess.”

Contractors say they have notified the Queensland Building and Construction Commission of the alleged structural issue. The regulator declined to comment on it and Descon has retained a flawless top-level Queensland builder licence.

The Gold Coast Bulletin contacted Descon managing director Danny Isaac, also known as Sami Adib, for comment.

Descon managing director Danny Isaac, also known as Sami Adib.

Tallis Group managing director Angus Gao said his company “took the necessary steps to safeguard our development, and the investment of our purchasers, when it became apparent that the delivery issues of the appointed builder, Descon, posed an unacceptable risk”.

He said a comprehensive audit of the site since Descon’s departure had found “no major structural issues”.

“The additional steel bracing on the level two basement is a precaution only, and our team is committed to going above and beyond to instil confidence in the construction process,” Mr Gao said in a statement.

“Moving forward, Tallis Property Group will be delivering Akin Residences under a developer-builder model to control the quality, staging and delivery of this exceptional project.”

Artist impressions of Tallis Property Group's Akin Residences at South Brisbane, which was under construction by Descon Group Australia.

Mr Gao said subcontractor agreements would be honoured and that Tallis was “working towards completing the project in late 2025”.

“While the delay is disappointing, upholding the quality of the development is of the utmost importance,” he said.

Tallis won a court case earlier this week, allowing it to access $4.3m in insurance bonds provided by Descon as security under the contract.

Descon had sought to prevent the developer from cashing the “unconditional and irrevocable insurance bonds from Vero Insurance”, documents lodged in the case show.

Despite Tallis Group’s win over the insurance bonds, the matter is set to continue with Descon’s claim the developer owes it money for work completed.

A hearing for Descon’s wind-up application has been adjourned until early February.